Loan with annuity loan and 2 linked building savings contracts

  • Erstellt am 2016-02-10 17:10:39

HilfeHilfe

2016-02-17 07:43:44
  • #1
turns me on more. especially since you are allowed to make a 5% special repayment
 

Gatho

2016-02-17 09:54:08
  • #2
Hello!



You are allowed that with the DB offer as well (at least with the 120,000 EUR annuity loan, not with the 250,000 EUR advance loan! With the two building savings contracts, special payments are also allowed.



Yes, we would do that from the start as well – but we would "save" these 110€ in case we need a buffer later (e.g. initial phase with a child).

So you don't see the problem with the 165,000 EUR after 20 years as that critical now? Or to put it differently, 110€ more wouldn’t be worth it to you to eliminate the interest rate risk?
 

Musketier

2016-02-17 10:40:34
  • #3
We had considered taking an interest rate fixed period of 15 or 20 years back then. We decided on 15 years and consciously chose the rate a bit lower, since parental leave was also upcoming and it was unclear how many hours my wife would be working afterwards. Everything else was supposed to be covered by special repayments. I believe we had already factored in about 1.5% special repayments per year for our calculations after parental leave. That we have already made 3 times the maximum amount of 5% in special repayments just 1.5 years after moving in, we never would have expected before. This was partly because there was more capital left at the end of the construction than expected, but also due to increased income. We will not be able to maintain 5% annually over the long term because at some point existing reserves will need to be increased, a car purchase will be due, etc. Nevertheless, the special repayments already made have reduced the outstanding debt after 15 years to such an extent that a 20-year loan would never pay off. So if you are really able to put aside a certain amount X every month, then you can definitely plan that into the calculation. But it must not remain just a "want". That requires some discipline and you must not lie to yourself about your monthly expenses beforehand, but should rather plan enough buffer for new purchases (car, household appliances, furniture, etc.), vacations, and repairs.
 

Jochen104

2016-02-17 12:30:27
  • #4
Hello, have you ever had an offer made for 20 or 25 years without KFW and a building savings contract? If not, I would recommend that to you.
 

Gatho

2016-02-17 12:42:46
  • #5
Hello Jochen,

thanks for the message "on the go"
Unfortunately, the interest rate then becomes quite "unpleasant" directly. It's already more like a 110% financing, which immediately leads to significant interest surcharges.
 

oleda222

2016-02-17 13:36:31
  • #6
I also prefer option 2. Your risk of still having a remaining debt of TEUR 165 in 20 years is quite low, and even if it happens, it wouldn't be a problem.

But if you don't properly service the building savings contracts (e.g., job loss or similar), you might end up at the end of the fixed interest period without a maturable building savings contract. This risk can be neglected for TEUR 50 for KFW, but I wouldn't take that risk with the larger loans.

I would rather consider a 15-year fixed interest period for option 2 and then see what the remaining debt looks like after 15/20 years. Then you can consider whether it even makes sense to go for a 20-year fixed interest period.
 

Similar topics
10.04.2012Financial plan with a building savings contract or with risk?12
20.05.2013Question: 1% repayment and 10 years fixed interest rate. Will the house never be paid off?13
29.07.2014Fixed interest period and loan term for 10, 15, or 20 years?12
14.07.2020Beginnings of a possible property | Questions about the building savings contract72
28.11.2015Building savings contract with advance loan versus annuity loan13
01.02.2016Are arbitrarily high special repayments legally possible after 10 years?17
02.06.2016Multifamily house - Building savings contract & pre-financing sensible?24
11.07.2016Interest rate fixation - financing assessment23
09.05.2017Construction financing with a low fixed rate56
18.08.2017No building savings/little equity and construction/purchase plans in the near future?18
22.02.2018Financing with low repayment and many special repayments60
28.05.2018Annuity loan vs. building savings contract 300k loan10
31.07.2018For how many years of fixed interest period would you currently finance?57
02.07.2019Financing with a 35-year fixed interest rate52
21.11.2018Financing with a building savings contract?18
04.11.2019Ongoing home savings contract regarding special repayment and allocation maturity18
16.04.2020Building savings contract as interest rate protection or put the money into special repayment?10
06.07.2022How secure is the collateralization of the remaining debt via a home savings contract?17
15.12.2022Follow-up Financing 2030 Prepare Now Building Savings Contract/Special Repayment/Fixed Deposit64
06.03.2023Is a building savings contract with a high outstanding debt sensible as partial security?17

Oben